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HMRC internal manual

Debt Management and Banking Manual

Time To Pay: agreeing or rejecting Time To Pay: interest

In all cases where TTP is agreed interest (where applicable) will continue to be charged.

This is due to the fact that interest chargeable under the legislation is charged to compensate the exchequer for late payment and to ensure fairness between those taxpayers that pay on time and those who don’t.

If you agree to TTP you should look to include the interest in the arrangement.